A reverse mortgage is a loan that allows seniors 62 and older to generate income off of their homes. Reverse mortgages work by calculating the amount of equity built into your home and then lending it out to you so that you can access it without selling your home.
For example, if you have $50,000 left on a mortgage and the home is worth $100,000, you could take out a loan to access that extra $50,000.
Reverse mortgages are perfect for seniors who want to supplement their monthly retirement income or need access to fast cash to finance expensive repairs.
In addition, most reverse mortgages get paid off by selling the home. For this reason, a reverse mortgage is perfect for people who don’t have any heirs to leave their home to or do not plan to pay off their mortgage in full. And even if you do have a heirs, your heirs are not on the hook for a reverse mortgage so you don’t have to worry about drowning them in debt.
Now that you know what a reverse mortgage is, lets jump into some more details about them.
How Can I Cash in On My Reverse Mortgage?
There are generally four different ways that you can cash in on the equity of your home using a reverse mortgage: [Read more…]